Corus condemns Russian rebel investor

The board of Corus yesterday stepped up its campaign against one of its major shareholders, the Russian millionaire Alisher Usmanov, claiming he has given "contradictory" information to shareholders as he seeks to nominate a former executive to the board.

Jim Leng, the chairman of Corus, is trying to snuff out any shareholder revolt on the issue ahead of its annual general meeting this week.

After rejecting Mr Usmanov's proposals to elect Mr van der Velden on Friday, Corus yesterday sought to further round on the Russian by disputing his claims that he has no plans to supply iron ore to Corus. Mr Leng revealed that Corus had received samples from Mr Usmanov as recently as 13 April. He also said statements made by Mr Usmanov that Mr van der Velden was "totally independent" were contradictory to previous statements made in an SEC filing in March.

"Given these inconsistencies about Mr. Usmanov's position it is difficult for the Board to understand his long term intentions," Mr Leng said. "There seems to be a misunderstanding if he feels that we do not have adequate steel and metals experience on our board."

Mr Leng is thought to be threatening to resign if shareholders do not support him and choose instead to elect Mr van der Velden on the board. Mr Usmanov already has the backing of another Russian metals tycoon and wants to gather support from Brandes Investment Partners, a US fund manager that owns more than 15 per cent of the group.

A spokesman yesterday declined to comment on Mr Leng's discussions with shareholders. A spokesman for Gallagher Holdings, Mr Usmanov's investment vehicle, yesterday dismissed Mr Leng's statement.

At least two other major shareholders said they supported Corus in its rejection of Adrianus van der Velden.